Introduction To Elliott Wave Theory - EarnForex

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Introduction ToElliott Wave Theory 2015 Muhammad Azeem http://www.ReadyForex.comAll rights reserved worldwide.YOU HAVE THE RIGHT TO DISTRIBUTE THIS EBOOK FREELY BUTNOT TO SELL IT OR MODIFY IT. Please see rights section on nextpage. Feel free to give this e-book to anyone you feel might find ituseful.1 Page

All rights reserved worldwide.The content of this publication is copyrighted by Muhammad Azeem http://www.ReadyForex.com2015. Although this is a free eBook, the contents cannot bechanged or altered in any way, nor used in any manner notconferred by these stated rights without express written consentfrom the author.Rights Explanation: You are welcome to distribute this file, butyou CANNOT EDIT IT IN ANY WAY. If you decide to share it, itcannot be sold; it can only be given away.Your Rights in further ][NO][NO]CanCanCanCanCanCanCanCanCanCanCanCanbe given away for freebe used as a bonus for newsletter subscriptionbe added to (free) membership web sitesbe offered as a bonus with other productsbe sold at all for any pricebe packaged with other productsbe edited and/or put your name on itbe used as web contentbe broken down into smaller articlesbe added to an e-course or auto responder as contentbe offered through auction sitessell any kind of RightsYou may give this eBook away for FREEas long as the content and linksremain in their original unaltered state.No other rights are conveyed to distributor or end user.2 Page

LEGAL STATEMENTSGeneral Terms of UseTHE INFORMATION PROVIDED IN THIS DOCUMENT IS FOR EDUCATIONAL PURPOSES ONLY. ITIS PROVIDED AS GENERAL MARKET COMMENTARY, AND DOES NOT CONSTITUTE INVESTMENTADVICE. NEITHER THE AUTHOR NOR ASSOCIATES, DISTRIBUTORS, HEIRS OR ASSIGNS SHALLACCEPT LIABILITY FOR ANY LOSS OR DAMAGE, INCLUDING WITHOUT LIMITATION, ANY LOSSOF PROFIT, WHICH MAY ARISE DIRECTLY OR INDIRECTLY FROM USE OF OR RELIANCE ONSUCH INFORMATION. THERE IS NO WARRANTY OF ANY KIND.Required Risk Disclosure – The Term “Securities” Shall apply to ALL Financial and tradingInstruments.SECURITIES TRADING OR INVESTING CARRIES IGNIFICANT RISK AND MAY NOT BE SUITABLEFOR EVERYONE. THE POSSIBILITY EXISTS THAT YOU COULD SUSTAIN A LOSS OF SOME OR ALLOF YOUR INITIAL INVESTMENT; THEREFORE YOU SHOULD NOT INVEST MONEY THAT YOUCANNOT AFFORD TO LOSE. THE TRADING STRATEGIES DISCUSSED MAY NOT BE SUITABLE FORALL INVESTORS DEPENDING UPON THEIR SPECIFIC INVESTMENT OBJECTIVES AND FINANCIALPOSITION. INVESTORS MUST MAKE THEIR OWN INVESTMENT DECISIONS IN LIGHT OF THEIROWN INVESTMENT OBJECTIVES, RISK PROFILE, AND CIRCUMSTANCES AND USING SUCHINDEPENDENT ADVISORS AS THEY BELIEVE NECESSARY. THEREFORE, THE INFORMATIONPROVIDED HEREIN IS NOT INTENDED TO GIVE INVESTORS SPECIFIC ADVICE AS TO WHETHERTHEY SHOULD ENGAGE IN A PARTICULAR TRADING STRATEGY. IN ADDITION, THEINFORMATION PROVIDED HEREIN HAS BEEN PREPARED FOR INFORMATION PURPOSES ONLYAND IS NOT AN OFFER TO BUY OR SELL, OR A SOLICITATION OF AN OFFER TO BUY OR SELLTHE SECURITIES MENTIONED OR PARTICIPATE IN ANY PARTICULAR TRADING STRATEGY.MARGIN REQUIREMENTS, TAX CONSIDERATIONS, COMMISSIONS, AND OTHER TRANSACTIONCOSTS MAY SIGNIFICANTLY AFFECT THE ECONOMIC CONSEQUENCES OF THE TRADINGSTRATEGIES DISCUSSED AND INVESTORS SHOULD REVIEW SUCH REQUIREMENTS WITH THEIRLEGAL, TAX AND FINANCIAL ADVISORS. FURTHERMORE, SECURITIES TRADING ENTAILS ANUMBER OF INHERENT RISKS; BEFORE ENGAGING IN SUCH TRADING ACTIVITIES, INVESTORSSHOULD UNDERSTAND THE NATURE AND EXTENT OF THEIR RIGHTS AND OBLIGATIONS AND BEAWARE OF THE RISKS INVOLVED. THE INFORMATION OR DATA PROVIDED HEREIN IS BASEDON INFORMATION GENERALLY AVAILABLE TO THE PUBLIC FROM SOURCES BELIEVED TO BERELIABLE. NO REPRESENTATION IS MADE THAT IT IS ACCURATE, COMPLETE OR CURRENT ORTHAT ANY RETURNS INDICATED WILL BE ACHIEVED. CERTAIN ASSUMPTIONS HAVE BEEN MADEIN THIS ANALYSIS, WHICH MAY IMPLY PROJECTED RETURNS WOULD BE ACHIEVED. CHANGESTO THE ASSUMPTIONS MAY HAVE A PARTICULAR IMPACT ON ANY RETURNS.Required Disclaimer CFTC Rule 4.41HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN INHERENTLIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOTREPRESENT ACTUAL TRADING. ALSO, SINCE THE TRADES HAVE NOT BEEN ACTUALLYEXECUTED, THE RESULTS MAY HAVE UNDER- OR OVERCOMPENSATED FOR THE IMPACT, IF ANY,OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADINGPROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNEDWITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNTWILL OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THOSE SHOWN.3 Page

My Trading and Forecasting backgroundHello, myself, Muhammad Azeem, an Elliott Wave Practitionersince 2004 is a certified Elliott Wave Analyst Level 1 with 93%score (2012). You can find more about my related learning www.readyforex.comMy own struggle in Forex tradingBack in the beginning of year 2004, I was searching for technicalindicators, which could earn me significant money via Forexmarket. Over the time, I have realized that still most of thetraders think that if some how they manage to find a “Fancy” andsecret “Technical Indicator” then, their all Forex trading problemswill vanish forever! Let me confess the same that like all other inexperienced and newbie Forex traders, I was looking for the samemagical ‘Indicator’ to solve my Forex trading problems 4 Page

Time flew and it was during my struggle to discover the abovementioned ‘Indicator’, under the guidance of my senior co-workersat a brokerage firm, I started gaining interest in day tradingsystems to trade Spot Forex EUR/USD currency pair. At that time,I heard that it is possible to project the price movement of acurrency pair, before price actually reaches a specific level; withpinpoint accuracy.Some traders use fundamental analysis (NEWS trading) and someuse technical analysis to forecast an upcoming price action. So,like any other novice currency trader, I was not keen to learn aneffective forecasting method or trading tool. Rather, I was onlyinterested to learn a Forex trading system enough to make easyand fast money!Forecasting the market as accurate as possible was somethingthat never appealed me enough to learn more. I was naïve andeager enough to generate buy and sell trading signals just byusing a trading formula. Honestly, I did not care about Forexjargons, market trend, money management, trading psychology,price patterns and average daily trading range, etc.All I cared about is how to make easy and fast money by tradingthe Spot Forex currency pairs, every day. That's all!5 Page

My extensive search on Google found me many Online Forex daytrading systems. Just to try my luck, I purchased one Forex daytrading system for just US 199/- with simple to follow tradingrules. After applying the custom designed technical indicators andchart setup, I got an arrow popup screen, which used to guideme; when to buy or sell currency pairs and when to stay out ofthe market. Just like that, it all seemed simple, easy andbeautiful!Well. to make my long story short, I have lost my Forex tradingaccount worth US 5,000/- within a week’s time. It was quite ashock for me! Unfortunately, I was unable to figure out that whatwent wrong where and how, so fast? Wondered if was that evenmy mistake! All I did was just following an Easy Forex day tradingsystem.6 Page

1. Just read pdf manual and apply indicators on charts.2. Pull pips out of market by following buy/sell arrows.3. Next, fill buckets of cash.Above is what was mentioned on that website from where Ipurchased my first "Easy Forex Day Trading System". Not tomention, that website went offline with in few months; afterselling non-profitable trading system to many currency traders.Again, I was directionless and all alone to face the music.Sometimes, I wonder that why I never thought; how come anyone could sell his profitable Forex day trading method forridiculously small price of US 199!Anyways, after facing the loss of US 5,199/- in Forex trading, Imustered up courage again but unfortunately lost money again inForex trading.7 Page

After continuous losses, I reached a point in my life that I wasdesperate enough to discover any kind of trading methodology tomake profit in Forex trading. I wanted to earn back all my lostPounds, Euros and Dollars; each and every penny of it.Thus, instead of finding another "Easy Forex Day TradingSystem", I tried to contact Old currency traders with white hairs,Trading gurus, Fx instructors and Chartered market technicians.I emailed each one of those asking to provide me with the nameof their favorite “Books” on Forex trading, investment and tradingpsychology. Most of them did not reply and some of them offeredme to buy their "Super Easy Forex Day Trading System".Definitely, thanks to my past experience, I was not keen onbuying or trying another "Easy Forex Day Trading System". Out ofmany currency trading experts and market analysts, only fewreplied me back with the names of their favorite Forex trading andinvestment books, available on Amazon.com. This is how I foundElliott Wave Theory.It is important to understand that Elliott wave theory tells us thatthere is no need to listen to NEWS in trading. Accordingly, I onlyuse pure technical analysis to trade and forecast the market. I donot care about any kind of news in my own Forex trading and stillmake big profit.8 Page

Introduction about the history and life of Mr.Ralph Nelson ElliottMr. Ralph Nelson Elliott (28 July 1871–15 January 1948) was aUSA based accountant and an author. His study on stock markethistorical data led him to develop the Elliott Wave Principle. Elliottwave is kind of a technical analysis that identifies trends in thefinancial markets. Mr. Elliott proposed that market movementunfolded in specific patterns, which practitioners today call Elliottwave patterns.9 Page

Early life and careerMr. Ralph Nelson Elliott was born in Marysville, Kansas, Unitedstates. After few years, his family moved to San Antonio, Texas,USA. He entered in the field of accounting in the middle of 1890’sand worked mainly in executive positions for railroad companies inCentral America and Mexico.In 1903, Mr. Ralph Elliott married Mary Elizabeth Fitzpatrick(1869–1941), who accompanied him during his extended timeworking as an expatriate in Mexico. After a civil unrest and riot inMexico, they came back to the United States and eventually to aresidence in New York City, where Mr. Elliott started a successfulconsulting business.The USA Department of State appointed Mr. Ralph Elliott in 1924to the post of Chief Accountant for Nicaragua (which at the timewas under American control). During his time in Central America,Mr. Elliott got an intestinal sickness. Due to this reason, he wasforced to retirement at the age 58. About this time, he decided todedicate himself to the study of the behavior of the Americanstock market.Elliott Wave TheoryMr. Ralph Nelson Elliott started his systematic study of 75 years ofstock market data in the year 1930. He also analyzed index charts10 P a g e

with increments ranging from yearly to hourly charts. In August1938, Mr. Elliott elaborated the results of his studies in the form ofseveral articles and letters.At that time, Mr. Elliott stated that, while stock market prices mayappear random and unpredictable, they actually followforeseeable, natural laws and could be calculated and predictusing the Fibonacci number. This means; it is possible to forecastthe future price of a currency pair, in advance with some sort ofprobability!In the years after Mr. Elliott's death, other Elliott wavepractitioners such as Charles J. Collins, Richard Russell, HamiltonBolton and A.J. Frost continued to use the Elliott wave principleand provide forecasts to investors.11 P a g e

Mr. A. J. Frost joined hands with Mr. Robert R. Prechter, Jr. Theygather together all the past articles and letters of Mr. RalphNelson Elliott. Next, they consolidated and put together all theElliott Wave rules and guidelines in one book. They publishedElliott wave principle book in the year 1978.12 P a g e

Mr. Robert R. Prechter, Jr had come across Elliott's works when hewas working as a market technician at Merrill Lynch Inc; hisprominence as a forecaster during the bull market of the 1980shelped bring Elliott's wave theory its greatest exposure up to thattime. Now-a-days, there are many other technical marketanalysts, which do not fully follow the rules of Elliott's wavetheory. They only use it as a starting point to create their ownforecasting methods.13 P a g e

Before I start discussing the rules and guidelines of Elliott WaveTheory, it is important to first address few common questionsrelated to Elliott wave principle.Question: What is the immediate learning from Elliott Wave?Answer: You can forecast an upcoming price move of Spot Forexcurrency pairs with high probability. Next, look for tradingopportunities, using Elliott wave patterns in the favor of yourforecasts with high winning percentage.Question:Anytime,itdoesnotwork?Answer: Like any other forecasting method, there are timeswhen the Elliott wave forecasts do fail. However; mostly, it worksquite well.Question: Can I make big profit in my own Forex trading : Elliott wave is a forecasting and trading tool. It doesprovide a framework; a) to enter in a market with buy or selltrade, b) where to place a stop loss to control the risk, c) whatprice level you should be looking forward to use as your takeprofit level etc. However, it is not 100%, bulletproof moneymakingmethod, so you may lose trades, some times. I will suggestconsidering learning money management and trading psychology.14 P a g e

Basic TenetsMr. Ralph Nelson Elliott originally discovered wave principle byanalyzing the stock market. However; the same rules andguideline of Elliott Wave

Just read pdf manual and apply indicators on charts. 2. Pull pips out of market by following buy/sell a rrows . 3. Next, fill buckets of cash. Above is what was mentioned on that website from where I purchased my first "Easy Forex Day Trading System". Not to mention, th at website went offline with in few months ; after selling non-profitable trading system to many currency traders. Again, I .